Agreement Of Dealership Between Manufacturer And Firm - Legal Draft

This Agreement is

made on this.......day of ........................ at ..............between :1.

Messers

XYZ Ltd., incorporated under the Companies Act, 1956 having its registered

office at ...................................................... hereinafter

called the company of the one part ;and2.

Messers

ABC & Co, a partnership concern consisting of its partners Mr.

................... , Mr............................ and

Mr.......................through its partners Mr......................having

its office at..........................hereinafter called the firm of the other

part.WHEREAS the

manufacturer is engaged in manufacturing electronics and electrical products of

different varieties.AND WHEREAS the firm

has its own establishment and is making sales of the products of other

companies and has shown its desire of selling the product of the company from

its new showroom recently taken on rent.AND WHEREAS the

company, after considering the proposals put forward by the firm has decided to

appoint the firm.NOW THIS AGREEMENT

WITNESSES AS UNDER :1.

That

the company hereby appoints the firm as its dealer to sell the products of the

company.2.

That

the appointment of the firm as dealer shall remain in force for three years

from the date of this agreement, but this agreement may be renewed for the same

period on the terms and conditioned that may be settled between the parties at

that time.3.

That

the firm shall keep the stock of the company for Rs................at any time.

The firm shall submit a quarterly return of the product received, product sold

and product in hand.4.

That

the company shall allow credit of one month to the firm on all invoices. But an

interest of 18% per annum shall be charged on all payments received after one

month.5.

That

advertisement material shall be supplied by the company to the firm in

sufficient quantity in order to display the same at sales depot and for

distribution in the areas of its operation.6.

That

the company shall bear 60% cost of rent, and staff subject to maximum of 6% of

the invoice value of all products of the company sold to the firm. This amount

shall be credited in running account of the firm with the company on quarterly

basis.7.

That

accounts between the parties shall be settled half yearly and debit or credit

notes shall be issued half yearly in order to square up the accounts.8.

That

the firm shall make every efforts to promote the sales of the company. In case

it is felt by the company that the firm is not taking proper interest, it may

terminate the dealership by giving one months prior notice.9.

That

on termination of the agreement the accounts shall be settled within a

fortnight. The company shall take back all unsold stock and settle the account.10.

That

firm shall not sell any goods of the company on a price higher or lower than

what may be fixed by the company from time to time.11.

That

the firm is entitled to appoint sub-dealer, agents, salesmen clerk etc. in

salary or commission basis, but with the condition that they shall work

strictly within the terms an conditions of this agreement.IN WITNESS WHEREOF

the parties have executed these presents on the day, month and year first above

written.Sealed, signed and

deliveredby Mr. A pursuant to

BoardResolution dated

......... ofXYZ Ltd.

____________________________(Secretary)Sealed, signed and

deliveredby Mr. C. Firm____________________________Mr. C. (Partner of

ABC & Co.)In the presence of1. ...............2. ...............